Document Library "New document" link default behavior

I have a SharePoint 2013 document library with a single content type associated with it. The default behavior I'm seeing on the "+ new document or drag files here" is to open a dialog box for selecting an existing file. I expect similar behavior to the "New Document" button on the ribbon which is:

1. show a list of the content types for the library so the user can select one or
2. open a blank template instance of the default content type in the associated client application (in this case Excel)

I've tried adding additional content types, changing a number of configuration settings, etc. all to no avail.  The target client machine is running Windows 8, Office 2013 Pro, and IE10 all 64 bit.

Any suggestions on additional configuration settings?

Thank you,

Andy